Tampa Bay-based tech firm ConnectWise is reportedly considering selling to private investors after being acquired by private equity firm Thoma Bravo in 2019. The company, which provides a platform for managed service providers (MSPs), has received bids from various private equity players, including Bain Capital, as reported by CRN. The bidding process has recently intensified, with sources valuing the company between $6 billion and $8 billion. Bain Capital, in particular, is emerging as a strong candidate, with one source stating that “Bain has been very aggressive” and that “the big names are all in there” (CRN).

Preparations for a potential sale may have been underway for some time, as ConnectWise implemented several strategic moves to increase profitability. According to sources cited by CRN, the company raised prices on some of its IT operations software by up to 10 percent and increased sales quotas for its internal sales teams. Such moves are typically made to improve a company’s financial position ahead of the due diligence process associated with acquisitions.

Industry insiders have anticipated the sale of ConnectWise, with one MSP executive revealing that a ConnectWise insider informed him of the likelihood of a sale sometime after April. The ongoing negotiations with private equity firms, such as Bain Capital, and the recent financial maneuvers by ConnectWise seem to support the notion that the company is preparing for another sale. The outcome of the bidding process and the potential implications for the MSP market remain to be seen.

SOURCE Industry Analysts Inc

Enhancing IT Management Services with Expertise and Adaptability